{"data":{"id":"us-ky/krs-224.1-400","jurisdiction":"us-ky","citation":"KRS 224.1-400","heading":"Reportable quantities and release notification requirements for","body":"hazardous substances, pollutants, or contaminants -- Variation of\nrequirements by administrative regulations -- Emergency plan -- Powers of\ncabinet -- Remedial action to restore environment -- Lien of cabinet for costs of\ncleanup -- Liability of financial institution acquiring property or serving as\nfiduciary.\n(1) As used in this section:\n(a) \"Hazardous substance\" means any substance or combination of substances\nincluding wastes of a solid, liquid, gaseous, or semi-solid form which, because\nof its quantity, concentration, or physical, chemical, or infectious\ncharacteristics may cause or significantly contribute to an increase in mortality\nor an increase in serious irreversible or incapaci tating reversible illness, or\npose a substantial present or potential hazard to human health or the\nenvironment. The substances may include but are not limited to those which\nare, according to criteria established by the cabinet, toxic, corrosive, ignitabl e,\nirritants, strong sensitizers, or explosive, except that the term \"hazardous\nsubstance\" shall not include petroleum, including crude oil or any fraction\nthereof which is not otherwise specifically listed or designated as a hazardous\nsubstance under this  section, and shall not include natural gas, natural gas\nliquids, liquified natural gas, or synthetic gas usable for fuel, or mixtures of\nnatural gas and synthetic gas;\n(b) \"Release\" means any spilling, leaking, pumping, pouring, emitting, emptying,\ndischarging, injecting, escaping, leaching, dumping, or disposing hazardous\nsubstances, pollutants, or contaminants into the environment, including the\nabandonment or discarding of barrels, containers, and other closed receptacles\ncontaining any hazardous substa nce, pollutant, or contaminant, but excludes\nemissions from the engine exhaust of a motor vehicle, rolling stock, aircraft,\nvessel, or pipeline pumping station engine; the release of source, by -product,\nor special nuclear material from a nuclear incident, as those terms are defined\nin the Atomic Energy Act of 1954, if the release is subject to requirements\nwith respect to financial protection established by the Nuclear Regulatory\nCommission under Section 170 of the Act, or any release of source by -\nproduct, or special nuclear material from any processing site designated under\nSections 102(a)(1) or 302(a) of the Uranium Mill Tailing Radiation Control\nAct of 1978; and the normal application of fertilizer;\n(c) \"Site\" means any building, structure, installation, equipment, pipe, or pipeline,\nincluding any pipe into a sewer or publicly -owned treatment works, well, pit,\npond, lagoon, impoundment, ditch, landfill, storage containers, motor\nvehicles, rolling stock, or aircraft, or any other place or area where a release or\nthreatened release has occurred. The term shall not include any consumer\nproduct in consumer use;\n(d) \"Environmental emergency\" means any release or threatened release of\nmaterials into the environment in such quantities or concentrations as cause or\nthreaten to cause an imminent and substantial danger to human health or the\nenvironment; the term includes, but is not limited to, discharges of oil and\nhazardous substances prohibited by Section 311(b)(3) of the Federal Clean\nWater Act - (Public Law 92-500), as amended;\n(e) \"Threatened release\" means a circumstance which presents a substantial threat\nof a release;\n(f) \"Pollutant or contaminant\" shall include, but not be limited to, any element,\nsubstance, compound, or mixture, including disease -causing ag ents, which\nafter release into the environment and upon exposure, ingestion, inhalation, or\nassimilation into any organism, either directly from the environment or\nindirectly by ingestion through food chains, will or may reasonably be\nanticipated to cause death, disease, behavioral abnormalities, cancer, genetic\nmutation, physiological malfunctions (including malfunctions in reproduction)\nor physical deformations, in such organisms or their offspring; except that the\nterm \"pollutant or contaminant\" shall no t include petroleum, including crude\noil or any fraction thereof which is not otherwise specifically listed or\ndesignated as a hazardous substance under this section and shall not include\nnatural gas, liquified natural gas, or synthetic gas of pipeline qua lity (or\nmixtures of natural gas and such synthetic gas);\n(g) \"Environment\" means the waters of the Commonwealth, land surface, surface,\nand subsurface soils and strata, or ambient air within the Commonwealth or\nunder the jurisdiction of the Commonwealth;\n(h) \"Financial institution\" means, for purposes of subsections (26) and (27) of this\nsection, the following:\n1. A bank or trust company defined by Subtitle 3 of KRS Chapter 286;\n2. A savings and loan association defined by Subtitle 5 of KRS Chapter\n286;\n3. A credit union defined by Subtitle 6 of KRS Chapter 286;\n4. A mortgage loan company or loan broker defined by Subtitle 8 of KRS\nChapter 286;\n5. An insurer defined by KRS Chapter 304; and\n6. Any other financial institution engaged in t he business of lending\nmoney, the lending operations of which are subject to state or federal\nregulation; and\n(i) \"Fiduciary\" means, for purposes of subsections (26) and (27) of this section, a\nfiduciary as defined by KRS Chapter 386.\n(2) The cabinet may p romulgate administrative regulations in accordance with the\nprovisions of KRS Chapter 13A designating individual hazardous substances,\npollutants, or contaminants; establishing their respective reportable quantities; and\nestablishing their respective relea se notification requirements, which differ from\nthose designated or established in subsections (3) to (9) of this section, if necessary\nto:\n(a) Protect human health and the environment;\n(b) Maintain consistency with valid scientific development; or\n(c) Maintain consistency with newly adopted federal regulations.\n(3) The hazardous substances for which release notification is required shall be those\nhazardous substances designated in 40 C.F.R. Part 302 under the Federal\nComprehensive Environmental Response Co mpensation and Liability Act of 1980,\nas amended; those extremely hazardous substances designated in 40 C.F.R. Part 355\nunder Title III of the Superfund Amendments and Reauthorization Act of 1986;\nnerve and blister agents designated under KRS 224.50 -130(2); and any hazardous\nsubstances designated by the cabinet in administrative regulations promulgated\npursuant to subsection (2) of this section.\n(4) The reportable quantity for a release of a hazardous substance designated in 40\nC.F.R. Part 302 under the Fed eral Comprehensive Environmental Response\nCompensation and Liability Act of 1980, as amended, shall be the quantity\ndesignated in 40 C.F.R. Part 302. The reportable quantity for a release of an\nextremely hazardous substance designated in 40 C.F.R. Part 355  under Title III of\nthe Superfund Amendments and Reauthorization Act of 1986 shall be the quantity\ndesignated in 40 C.F.R. Part 355. The reportable quantity for a release of a nerve or\nblister agent designated under KRS 224.50 -130(2) shall be any quantity.  The\ncabinet may establish reportable quantities for hazardous substances in\nadministrative regulations promulgated pursuant to subsection (2) of this section\nwhich differ from those established in this subsection. The reportable quantity for\nany hazardous  substance designated by the cabinet in administrative regulations\npromulgated pursuant to subsection (2) of this section shall be the reportable\nquantity established by the cabinet.\n(5) The release notification requirements for a release of a hazardous su bstance\ndesignated in 40 C.F.R. Part 302 under the Federal Comprehensive Environmental\nResponse Compensation and Liability Act of 1980, as amended, shall be the\nnotification requirements established in 40 C.F.R. Part 302. The release notification\nrequirements for a release of an extremely hazardous substance designated in 40\nC.F.R. Part 355 under Title III of the Superfund Amendments and Reauthorization\nAct of 1986 shall be the notification requirements established in 40 C.F.R. Part 355.\nWhenever notification of a release or threatened release of a hazardous substance is\nrequired pursuant to this section, any person possessing or controlling the hazardous\nsubstance shall immediately notify the cabinet's twenty -four (24) hour\nenvironmental response line. The cabinet may establish release notification\nrequirements by administrative regulation promulgated pursuant to subsection (2) of\nthis section which differ from those established in this subsection. The release\nnotification requirements for any hazardous subs tance designated by the cabinet in\nadministrative regulations promulgated pursuant to subsection (2) of this section\nshall be the release notification requirements established in the cabinet's\nadministrative regulations.\n(6) Any person possessing or contro lling a pollutant or contaminant for which a\nreportable quantity has been established by administrative regulation promulgated\npursuant to subsection (2) of this section shall immediately notify the cabinet's\ntwenty-four (24) hour environmental response li ne, as soon as that person has\nknowledge of any release or threatened release, other than a permitted release or\napplication of a pesticide in accordance with the manufacturer's instructions, of a\npollutant or contaminant to the environment in a quantity e qual to or exceeding the\nreportable quantity. In the notice to be made to the cabinet, the person shall state, at\na minimum, the location of the release or threatened release, the material released or\nthreatened to be released, and the approximate quantity  and concentration of the\nrelease or threatened release.\n(7) Any person possessing or controlling a pollutant or contaminant shall, as soon as\nthat person has knowledge of any release or threatened release of a pollutant or\ncontaminant from a site to the e nvironment in a quantity which may present an\nimminent or substantial danger to the public health or welfare, immediately notify\nthe cabinet's twenty-four (24) hour environmental response line. In the notice to be\nmade to the cabinet, the person shall state, at a minimum, the location of the release\nor threatened release, the material released or threatened to be released, and the\napproximate quantity and concentration of the release or threatened release. If a\nperson possessing or controlling a pollutant o r contaminant for which a reportable\nquantity has not been established in administrative regulations promulgated\npursuant to subsection (2) of the section fails to report a release or threatened\nrelease because of a good-faith belief that the release did not present an imminent or\nsubstantial danger to the public health or welfare, that person shall not be liable for\na violation of the release notification requirements of this section. In determining\nwhether a person has acted in good faith, the cabinet sha ll consider the\ncircumstances surrounding the release, including whether the release was a\npermitted release or the application of a pesticide in accordance with the\nmanufacturer's instructions.\n(8) The cabinet may require the person subject to the release  notification requirements\nof subsections (5) to (9) of this section to provide a written report on the release or\nthreatened release. This report shall be submitted to the environmental response\nsection of the cabinet within seven (7) days of the cabinet' s demand for the report.\nThe report shall identify the following:\n(a) The precise location of the release or threatened release;\n(b) The name, address, and phone number of the person possessing or controlling\nthe material at the time of the release or threatened release;\n(c) The name, address, and phone number of persons having actual knowledge of\nthe facts surrounding the release or threatened release;\n(d) The specific pollutant or contaminant or hazardous substance released or\nthreatened to be released;\n(e) The concentration and quantity of the pollutant or contaminant or hazardous\nsubstance in the release or threatened release;\n(f) The circumstances and cause of the release or threatened release;\n(g) Efforts taken by the person to control or mitigate the release or threatened\nrelease;\n(h) To the extent known, the harmful effects of the release or threatened release;\n(i) The transportation characteristics of the medium or matrix into which the\nmaterial was released or threatened to be released;\n(j) Any pres ent or proposed remedial action by the person at the site of the\nrelease or threatened release;\n(k) The name, address, and phone number of the person who can be contacted for\nadditional information concerning the release or threatened release; and\n(l) Any other information that may facilitate remediation of the site.\n(9) A person possessing or controlling a hazardous substance, pollutant, or contaminant\nshall immediately notify the cabinet pursuant to subsection (5) of this section when\nrelease notification , including notification of a continuous release reported under\nthe Federal Comprehensive Environmental Response Compensation and Liability\nAct of 1980, as amended, is provided to the United States Environmental Protection\nAgency. Within seven (7) days of providing any written notification to the United\nStates Environmental Protection Agency, the person shall submit to the cabinet a\ncopy of the release notification submitted to the United States Environmental\nProtection Agency. The cabinet shall not require  additional information pursuant to\nsubsection (5) of this section if the release notification is in compliance with this\nsubsection, unless a written report is required under subsection (8) of this section or\nthe release or threatened release constitutes an environmental emergency.\n(10) Any person in charge of a vessel or site from which oil is discharged in a harmful\nquantity as defined by 40 C .F.R. Part 110 in contravention of Section 311 of the\nFederal Clean Water Act shall immediately notify the cabinet's twenty -four (24)\nhour environmental response line. In the notice to be made to the cabinet, the person\nshall state, at a minimum, the location of the discharge, the material discharged, and\nthe approximate quantity and concentration of the discharge.\n(11) Any person possessing or controlling petroleum or a petroleum product as defined\nby KRS 224.60-115(15) shall, as soon as that person has kn owledge of any release\nor threatened release, other than a permitted release or application of a pesticide in\naccordance with the manufacturer's instructions, in an amount of twenty -five (25)\ngallons or more in a twenty -four (24) hour period, except for di esel fuel for which\nthe reportable quantity is seventy -five (75) gallons or more in a twenty -four (24)\nhour period, or in contravention of Section 311 of the Federal Clean Water Act,\nimmediately notify the cabinet's twenty-four (24) hour environmental response line.\nIn the notice to be made to the cabinet, the person shall state, at a minimum, the\nlocation of the release or threatened release, the material released or threatened to be\nreleased, and the approximate quantity and concentration of the release o r\nthreatened release.\n(12) The cabinet may require the person subject to subsections (10) and (11) of this\nsection to provide a written report on the discharge or release. This report shall be\nsubmitted to the environmental response section of the cabinet within seven (7)\ndays of the cabinet's demand for the report. The report shall identify the following:\n(a) The precise location of the discharge or release;\n(b) The name, address, and phone number of the person possessing or controlling\nthe material at the time of the discharge or release;\n(c) The name, address, and phone number of persons having actual knowledge of\nthe facts surrounding the discharge or release;\n(d) The concentration and quantity of the discharge or release;\n(e) The circumstances and cause of the discharge or release;\n(f) Efforts taken by the person to control or mitigate the discharge or release;\n(g) To the extent known, the harmful effects of the discharge or release;\n(h) The transportation characteristics of the medium or matrix into whi ch the\nmaterial was discharged or released;\n(i) Any present or proposed remedial action by the person at the site of the\ndischarge or release;\n(j) The name, address, and phone number of the person who can be contacted for\nadditional information concerning the discharge or release; and\n(k) Any other information that may facilitate an emergency spill response, or\nremediation of the site.\n(13) Timely notification received under the release notification requirements of this\nsection or information obtained in a notification received under the release\nnotification requirements of this section may not be used against the person making\nthe notification in any criminal proceeding, except in a prosecution for submitting a\nfalse or untimely notification to the cabinet.  Notification received by the cabinet of\na threatened release or discharge shall not be deemed a separate incident.\n(14) The cabinet shall be the lead agency for hazardous substance, pollutant, or\ncontaminant emergency spill response and, after consultatio n with other affected\nfederal, state, and local agencies and private organizations, shall establish a\ncontingency plan for undertaking emergency actions in response to the release of a\nhazardous substance, pollutant, or contaminant. The contingency plan shall:\n(a) Provide for efficient, coordinated, and effective action to minimize damage to\nthe air, land, and waters of the Commonwealth caused by the release or\nthreatened release of hazardous substances, pollutants, or contaminants;\n(b) Include containment, cleanup, and disposal procedures;\n(c) Provide for remediation or restoration of the lands or waters affected\nconsistent with this section;\n(d) Assign duties and responsibilities among state cabinets and agencies in\ncoordination with federal and local agencies;\n(e) Provide for the identification, procurement, maintenance, and storage of\nnecessary equipment and supplies;\n(f) Provide for designation of persons trained, prepared, and available to provide\nthe necessary services to carry out the plan; and\n(g) Establish procedures and techniques for identifying, containing, removing,\nand disposing of hazardous substances released or being released.\n(15) The cabinet shall have the authority, power, and duty to:\n(a) Recover from persons liable therefor for the benef it of the hazardous waste\nmanagement fund, the cabinet's actual and necessary costs expended in\nresponse to a threatened release, an environmental emergency, or a release of\na hazardous substance that is reportable under this section. Except as provided\nin paragraph (b) of this subsection, this section is intended solely to recognize\nthe existence of a cause of action on behalf of the cabinet and is not intended\nto expand or contract the bases of liability, the elements of proof, or the\namount of liability of any person;\n(b) Notwithstanding paragraph (a) of this subsection, recover its costs incurred in\nthe removal of oil or hazardous substances discharged in violation of Section\n311(b)(3) of the Federal Clean Water Act from any person liable therefor\nunder Section 311 of the Federal Clean Water Act subject to limitations of\nliability and defenses provided in the section. The limitations of liability shall\napply to the total of state and federal expenses; and\n(c) In every case where action required under this  section is not being adequately\ntaken or the identity of the person responsible for the release or threatened\nrelease is unknown, the cabinet or its agent may contain, remove, or dispose\nof the hazardous substance, pollutant, or contaminant or take any ot her action\nconsistent with this section, including, but not limited to, issuance of an\nemergency order as provided in KRS 224.10 -410 to the person possessing,\ncontrolling, or responsible for the release or threatened release as necessary\nfor the protection of the environment and public health, safety, or welfare.\n(16) Any duly authorized officer, employee, or agent of the cabinet may upon notice to\nthe owner or occupant enter any property, premises, or place at any time for the\npurposes of this section, if the entry is necessary to prevent damage to the air, land,\nor waters of the Commonwealth. Notice to the owner or occupant shall not be\nrequired if the delay attendant upon providing it will result in imminent risk to\npublic health or safety.\n(17) The cabinet shall prepare and annually update an inventory of all sites in the\nCommonwealth at which there is or has been an environmental emergency or a\nrelease of a hazardous substance, pollutant, or contaminant. In preparing the\ninventory, the cabinet s hall determine, based on information available to the\ncabinet, the impact of each site on public health and the environment and identify\nthe relative priority for restoration or remedial action. Upon determining that no\nfurther restoration or remedial action is necessary, the cabinet shall so designate the\nsite on the inventory. A separate designation of sites where a remedial action\ninvolving on -site containment or treatment has been performed and other sites\nwhere restoration of the environment has not be en achieved shall be maintained. A\nreview of environmental conditions at sites remediated by on -site containment or\ntreatment and other sites where restoration or remediation of the environment is not\nachieved shall be conducted by the cabinet every five ( 5) years to determine\nwhether additional action is necessary to protect human health or the environment.\n(18) Any person possessing or controlling a hazardous substance, pollutant, or\ncontaminant which is released to the environment, or any person who caus ed a\nrelease to the environment of a hazardous substance, pollutant, or contaminant,\nshall characterize the extent of the release as necessary to determine the effect of the\nrelease on the environment, and shall take actions necessary to correct the effect  of\nthe release on the environment. Any person required to take action under this\nsubsection shall have the following options:\n(a) Demonstrating that no action is necessary to protect human health, safety, and\nthe environment;\n(b) Managing the release in a  manner that controls and minimizes the harmful\neffects of the release and protects human health, safety, and the environment,\nprovided that the management may include any existing or proposed\nengineering or institutional controls and the maintenance of those controls;\n(c) Restoring the environment through the removal of the hazardous substance,\npollutant, or contaminant; or\n(d) Any combination of paragraphs (a) to (c) of this subsection.\n(19) Unless otherwise required by the cabinet, a person required to c haracterize the\nextent of a release and correct the effect of the release on the environment under\nsubsection (18) of this section may take those actions without making the\ndemonstrations to the cabinet required by subsections (18) to (21) of this section, if:\n(a) The release is less than the reportable quantity of a hazardous substance,\npollutant, or contaminant;\n(b) The release is of a pollutant or contaminant for which a reportable quantity\nhas not been established by administrative regulation promulgate d pursuant to\nsubsection (2) of this section, if the release does not present an imminent or\nsubstantial danger to the public health or welfare; or\n(c) The release is authorized by a state or federal permit.\n(20) If a person required to take action under subsection (18) of this section demonstrates\nto the cabinet that, pursuant to subsection (18)(a) of this section, no action is\nnecessary to protect human health, safety, and the environment or, pursuant to\nsubsection (18)(b) of this section, the release wil l be managed in a manner that\ncontrols and minimizes the harmful effects of the release and protects human health,\nsafety, and the environment, the cabinet shall not require restoration of the\nenvironment through the removal of the hazardous substance, pol lutant, or\ncontaminant pursuant to subsection (18)(c) of this section.\n(21) A person required to take action under subsection (18) of this section who does not\nrestore the environment through removal of the hazardous substance, pollutant, or\ncontaminant in accordance with subsection (18)(c) of this section shall demonstrate\nto the cabinet that the remedy is protective of human health, safety, and the\nenvironment, by considering the following factors:\n(a) The characteristics of the substance, pollutant, or c ontaminant, including its\ntoxicity, persistence, environmental fate and transport dynamics,\nbioaccumulation, biomagnification, and potential for synergistic interaction\nand with specific reference to the environment into which the substance,\npollutant, or contaminant has been released;\n(b) The hydrogeologic characteristics of the facility and the surrounding area;\n(c) The proximity, quality, and current and future uses of surface water and\ngroundwater;\n(d) The potential effects of residual contamination of potentially impacted surface\nwater and groundwater;\n(e) The chronic and acute health effects and environmental consequences to\nterrestrial and aquatic life of exposure to the hazardous substance, pollutant,\nor contaminant through direct and indirect pathways;\n(f) An exposure assessment; and\n(g) All other available information.\n(22) A person who submits a proposal to the cabinet pursuant to subsection (18) of this\nsection may request in writing a final determination on the proposal no sooner than\nthirty (30) days after its submission. When a final determination on the proposal is\nrequested, the cabinet shall make its final determination within sixty (60) working\ndays from the date the request is received by the cabinet. After a final determination\nhas been made, the person requesting the final determination may request a hearing\npursuant to the provisions of KRS 224.10 -420. Nothing in this subsection shall\nrelieve any person of any obligations imposed by law during an environmental\nemergency, nor shall it requ ire the cabinet to approve a proposal which would\nviolate this chapter or the administrative regulations promulgated pursuant thereto.\n(23) (a) The cabinet shall have a lien against the real and personal property of a person\nliable for the actual and neces sary costs expended in response to a release or\nthreatened release or an environmental emergency. The lien shall be filed with\nthe county clerk of the county in which the property of the person is located.\n(b) If a financial institution exempted from liabi lity by subsection (26) of this\nsection conveys the site it has acquired, then the cabinet shall have a lien\nagainst the site for the actual and necessary costs expended in response to a\nrelease or threatened release or an environmental emergency. The lien shall be\nfiled with the county clerk of the county in which the site is located.\n(24) Nothing in this section shall replace the financial and technical assistance available\nto the Commonwealth pursuant to Section 311 of the Federal Clean Water Act\n(Public Law 92-500) as amended, but shall be used to provide the Commonwealth\nwith a mechanism for additional response to releases and threatened releases of\nhazardous substances, pollutants, or contaminants.\n(25) Defenses to liability, limitations to liability, and rights to contribution shall be\ndetermined in accordance with Sections 101(35), 101(40), 107(a) to (d), 107(q) and\n(r), and 113(f) of the Comprehensive Environmental Response Compensation and\nLiability Act, as amended, and the Federal Clean Water Act, as amended.\n(26) In addition to the defenses and limitations provided in subsection (25) of this\nsection, a financial institution that acquired a site by foreclosure, by receiving an\nassignment, by deed in lieu of foreclosure, or by otherwise becoming the owner as a\nresult of the enforcement of a mortgage, lien, or other security interest held by the\nfinancial institution, shall not be liable under this section with respect to the site, if:\n(a) The financial institution served only in an administrative, cus todial, financial,\nor similar capacity with respect to the site before its acquisition;\n(b) The financial institution did not control or direct the handling of the material\ncausing the environmental emergency, or control or direct the handling of the\nhazardous substance, pollutant, or contaminants, at the site before its\nacquisition;\n(c) The financial institution did not participate in the day -to-day management of\nthe site before its acquisition;\n(d) The financial institution, at the time it acquired the site, did not know and had\nno reason to know that a hazardous substance, pollutant, or contaminant was\ndisposed at the site. For purposes of this paragraph, the financial institution\nshall have undertaken, at the time of a cquisition, all appropriate inquiries into\nthe previous ownership and uses of the property consistent with good\ncommercial or customary practice in an effort to minimize liability. What\nactions constitute all appropriate inquiries shall be determined by ta king into\naccount any specialized knowledge or experience on the part of the financial\ninstitution, the relationship of the market value of the site to the value of the\nsite if uncontaminated, commonly known or reasonably ascertainable\ninformation about th e site, the obviousness of the presence or likely presence\nof contamination at the site, the ability to detect the contamination by\nappropriate inspection, and any other relevant factor;\n(e) The financial institution, when it undertakes actions to protect or preserve the\nvalue of the site, undertakes those actions in accordance with this chapter and\nthe administrative regulations adopted pursuant thereto;\n(f) The financial institution, its employees, agents, and contractors did not cause\nor contribute to an  environmental emergency, or to a release or threatened\nrelease of a hazardous substance, pollutant, or contaminant; and\n(g) The financial institution complies with the release notification requirements of\nsubsection (9) of this section.\n(27) In addition t o the defenses and limitations provided in subsection (25) of this\nsection, a financial institution serving as a fiduciary with respect to an estate or\ntrust, the assets of which contain a site, shall not be liable under this section with\nrespect to the site if:\n(a) The financial institution served only in an administrative, custodial, financial,\nor similar capacity with respect to the site before it became a fiduciary;\n(b) The financial institution did not control or direct the handling of the material\ncausing the environmental emergency, or control or direct the handling of the\nhazardous substance, pollutant, or contaminants, at the site before it became a\nfiduciary;\n(c) The financial institution did not participate in the day -to-day management of\nthe site before it became a fiduciary;\n(d) The financial institution, at the time it became a fiduciary, did not know and\nhad no reason to know that a hazardous substance, pollutant, or contaminant\nwas disposed at the site. For purposes of this paragraph, the fina ncial\ninstitution shall have undertaken, at the time it became a fiduciary, all\nappropriate inquiries into the previous ownership and uses of the property\nconsistent with good commercial or customary practice in an effort to\nminimize liability. What action s constitute all appropriate inquiries shall be\ndetermined by taking into account any specialized knowledge or experience\non the part of the financial institution, the relationship of the market value of\nthe site to the value of the site if uncontaminated,  commonly known or\nreasonably ascertainable information about the site, the obviousness of the\npresence or likely presence of contamination at the site, the ability to detect\nthe contamination by appropriate inspection, and any other relevant factor;\n(e) The financial institution, when it undertakes actions to protect or preserve the\nvalue of the site, undertakes those actions in accordance with this chapter and\nthe administrative regulations adopted pursuant thereto;\n(f) The financial institution, its empl oyees, agents, and contractors did not cause\nor contribute to an environmental emergency, or to a release or threatened\nrelease of a hazardous substance, pollutant, or contaminant; and\n(g) The financial institution complies with the release notification requirements of\nsubsection (9) of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=41566","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:38Z","sha256":"a073e57b6d35c775640711a31af74dacfdfd5979f14cbf29a8755badd624a943","source_id":"us-ky","stale":false,"prev":"us-ky/krs-224.1-310","next":"us-ky/krs-224.1-401"},"notice":"GroundRules: Original legal text. Not legal advice."}